City of Houston Build it Forward Harvey Recovery Situation and Pipeline

Page created by Jared Conner
 
CONTINUE READING
City of Houston Build it Forward Harvey Recovery Situation and Pipeline
City of Houston
            Build it Forward
 Harvey Recovery Situation and Pipeline
               Report #31
           February 28, 2022

Funds for Harvey Recovery Programs are provided by the City of Houston and the Texas General Land
Office through the U.S. Department of Housing and Urban Development’s Community Development
Block Grant Program.
City of Houston Build it Forward Harvey Recovery Situation and Pipeline
Harvey Recovery
                                           Situation and Pipeline Report #31
                                                               February 2022

Situation Report: February 2022
The City of Houston Homeowner Assistance Program (HoAP) helps homeowners affected by Hurricane
Harvey repair and rebuild their damaged homes, or get reimbursed for work already completed. The
program prioritizes low-and moderate-income homeowners, while serving Houstonians of all income
levels. The Housing and Community Development Department (HCDD) administers the program for
the City of Houston, through a sub-grant agreement with the Texas General Land Office (GLO)

The program launched in January 2019 with outreach to affected homeowners to encourage them to
participate in the program. At the same time, the City was building capacity to repair and reconstruct
homes and reimburse homeowners for repair expenses. The first homeowners were served in April 2019,
with steady ramp up since then.

Single Family Current Status:
 Submitted Single-Family Files to GLO: 1,259
 HoAP Submitted Files: 719
 HbAP Submitted Files: 540

GLO Approved Single-Family Files: 1,137
 HoAP Approved Files: 678
 HbAP Approved Files: 459

Single-Family Households with Assistance in Process: 241
 Homeowners in contract closings/permitting/waiting NTPs: 128
 Recons Under Construction: 4
 Rehabs Under Construction: 0
 Approved homebuyers searching for home: 109

Total Single-Family Assisted: 890
 Recons Completed: 202
 Rehabs Completed: 71
 Reimbursement checks sent: 267
 HbAP closed: 350

Current Multifamily Status:
 32 developments announced for $450 million in funding and nearly $1 billion in development cost
 7 developments announced and working through underwriting/legal documents, 16 are under
     construction, 3 developments are pending closing, and 6 developments have been completed
There may be a few changes to the announced 9% Tax Credit developments once the State finalizes its
list

Public Services Status:
 18 different contracts with nonprofits approved by Council for a total of $15.2 million.

Overall Funding Status: **Based on Adjusted Budgets 2/26/21
$551 million (66% of total) with identified addresses/developments/nonprofits for funding currently
under contract/LOI negotiations, underwriting or otherwise prepping for Council approval.
$393 million (46% of total) with Council Approved contract

2
City of Houston Build it Forward Harvey Recovery Situation and Pipeline
Harvey Recovery
                                         Situation and Pipeline Report #31
                                                             February 2022

Program Overview
Notice to Harvey Homeowner Assistance Program Applicants

The City of Houston and the Texas General Land Office (GLO) continue to work together on an
agreement to help homeowners who need assistance with repair, reconstruction, and reimbursement
for homes damaged by Hurricane Harvey.

At this time, the City of Houston will continue assisting homeowners whose repairs and reconstructions
were approved by the GLO prior to October 6, 2020. All other repair and reconstruction applications,
including those approved after October 6, 2020, will be transferred to the GLO to complete the process.

In addition, the GLO has granted the City of Houston limited funding to provide reimbursements for
completed and eligible home repairs paid by a homeowner in excess of past aid the homeowner
received from sources including insurance, FEMA, nonprofit assistance, and the Small Business
Administration. The deadline for new applications has since passed. Those who submitted their
applications prior to December 31, 2020 will continue to be assisted by the City of Houston.

Any questions for HCDD can be directed to our Call Center at 832-393-0550. The GLO’s Homeowner
Assistance Program team can be reached at 346-222-4686 or 1-866-317-1998 (toll-free) or at
houston.glo@recovery.texas.gov. More information about the GLO’s program can be found at
recovery.texas.gov/hap/houston

We appreciate your patience, and we will continue to work hard to ensure a smooth transition of
applications to the GLO, so that no one is left behind.

Table 1: Homeowner Assistance Program Snapshot

                       Activity                                   As of 3-7-22

                       Total number of applications                         719
                       submitted to GLO

                       Approved by GLO                                      678
                       Recons Completed                                     202
                       Rehabs Completed                                      71
                       Reimbursement checks sent                            267

                       HoAP Funds obligated

                       HoAP funds obligated (as of              $54,197,889.06
                       02/28/22)

3
City of Houston Build it Forward Harvey Recovery Situation and Pipeline
Harvey Recovery
                                                                                Situation and Pipeline Report #31
                                                                                                    February 2022

Survey and Grant Award Progress
678 applicants have been approved by the GLO. 277 homeowners have received a Notice to Proceed
to construction and 267 have received a reimbursement check (some homeowners may receive a
reimbursement check while also participating in the city-managed program option).

Figure 1: Progress toward Grant Award (3-7-22)

                    * HoAP program is no longer accepting applications. At this time, the City of
                    Houston will continue assisting homeowners whose repairs and reconstructions
                    were approved by the GLO prior to October 6, 2020

 Invited to Apply: This category represents the                    Reimbursements Issued: For homeowners            Notices to Proceed w/ Construction: This
 most vulnerable residents and highest priorities                  who are reimbursement only, this is the final    category includes all homes that need repair or
 from the survey respondents who have been                         step in the process. Some homeowners receive     full reconstruction. The notice to proceed is to
 invited to submit a complete application. The                     both a reimbursement and additional repair, so   the builder, and involves the homeowner
 deadline for new applications has passed. Those                   they receive the reimbursement check             moving out of their home, the utilities being
 who submitted their applications prior to                         immediately after the GLO issues the approval,   shut off, demolition if the home is to be
 December 31, 2020 will continue to be assisted                    and the home moves forward into construction     reconstructed, and the full construction
 by the City of Houston.                                           for the remaining repairs.                       process.

 Intake Complete: This category represents the                     Rehabilitations Complete: This category          Approved by the GLO: This category includes
 number of files that the City has received from                   includes all homes that are through the repair   the number of homes out of the 719 submitted
 the intake contractor, which are ready for                        only or reimbursement and repair process, with   to the GLO that have received GLO approval.
 review and eligibility determination. The                         the homeowner having received the keys back      The next step for all homeowners is to sign the
 difference between this category and the next                     to their home.                                   required contracts, regardless of whether they
 category are the files that are waiting additional                                                                 are receiving repair, reconstruction or
                                                                                                                    reimbursement.
 GLO-required documents from the applicant in
 order to complete the file. This number has
 dropped from last month due to files sent back
 to the intake contractor for further processing.

 Eligibility Review Complete: This category                        Reconstruction Complete: This category
 represents the number of files that have been                     includes all homes that have been fully
 determined to be eligible per City, GLO and                       reconstructed with the homeowner having
 HUD standards. These files are now moving                         received the keys back to their new home.
 through inspections, environmental review and
 completion of the final scope of work with the
 builder and homeowner.

4
Harvey Recovery
                                                             Situation and Pipeline Report #31
                                                                                 February 2022

Snapshot: Harvey Homebuyer Assistance Program
For many Houstonians, owning a home is a dream – one that is often out of reach. Incomes in Houston
have not risen as quickly as home prices, which means fewer people can afford to buy homes. In the
wake of Hurricane Harvey, many families had to delay their plans to find a home or start all over.

Life plans shouldn’t be put on hold because of the weather. Harvey Homebuyer Assistance Program
provides up to $30,000 in assistance to families who were in Houston at the time of Hurricane Harvey,
who are either buying a first home or replacing a Harvey-damaged home.

As of January, 459 applicants have been approved by the GLO for eligibility. 350 applicants have closed
on their new homes.

Additional qualifications apply. Program subject to change and/or cancellation without notice.

Learn more at - https://recovery.houstontx.gov/hbap/

5
Harvey Recovery
                                         Situation and Pipeline Report #31
                                                             February 2022

Snapshot: Multifamily Development

The first of three rounds of funding for multifamily development opened in February 2019 and closed
April 12, 2019. Fifty-six applications were reviewed and 14 were selected for funding. The selected
developments will create 1,557 apartments in Houston, the majority of which will be rented at
guaranteed-affordable rates to qualified renters.

Figure 2: Award summary: Round 1, Harvey Multifamily Program

                               CDBG-DR Requested        Total Development Costs

               $70
               $60
    Millions

               $50
               $40
               $30
               $20
               $10
                $-

                                          Total Units     LMI Units

    250
    200
    150
    100
      50
         0

6
Harvey Recovery
                                                              Situation and Pipeline Report #31
                                                                                  February 2022

$100 million expansion of Harvey Multifamily Program will provide
additional affordable homes to essential workers, seniors, and vulnerable
Houstonians.

The Harvey Multifamily Program issued two calls for proposals, in early 2019 and early 2020. Through
these two funding rounds, a total of 36 developments will be supported for funding.

By combining program funding with other sources, including 4% and 9% tax credits and private
financing, the awards represent over $1 billion in development. They include communities for seniors,
supportive housing options for those experiencing housing insecurity, and workforce homes for
individuals and families.

The currently proposed Round 2 of the program will create 2,666 apartments. Combined with Round 1,
the Harvey Multifamily Program is expected to bring 5,223 new, resilient apartments to Houston, 4,692
of which will be held at affordable prices to provide greater choice and quality of homes to low- and
moderate-income Houstonians.

Figure 3: Award summary: Round 2, Harvey Multifamily Program

                                                CDBG-DR Requested              Total Development Costs

                      $90
                      $80
           Millions

                      $70
                      $60
                      $50
                      $40
                      $30
                      $20
                      $10
                       $-

    Amount provided is based on the application and is subject to revision during HCDD underwriting.

Funds for Harvey Recovery Programs are provided by the City of Houston and the Texas General Land Office through the U.S. Department of Housing and
Urban Development’s Community Development Block Grant Program. For more information visit https://recovery.houstontx.gov/multifamily-program/

Press release - June 29, 2021 - Harvey Multifamily Program is announcing that up to $28 Million will be
available for the currently issued Notice of Funding Availability (NOFA)

7
Harvey Recovery
                                                              Situation and Pipeline Report #31
                                                                                  February 2022

The Harvey Recovery Small Rental Program Awards $20M to Nonprofit
Housing Developers to Create Up to 14 Affordable Apartment
Communities

The City of Houston Housing and Community Development Department (HCDD) will select up to 14
developments to receive funding as Round 1 of the Harvey Recovery Small Rental Program. This
program creates and rehabilitates small (2-7 unit) rental communities and helps build capacity and
experience for local nonprofit developers to help build Houston’s overall ability to provide quality,
affordable homes for community members. Funding for the Harvey Recovery Small Rental Program is
provided by the U.S. Department of Housing and Urban Development (HUD) as part of disaster relief
efforts to rebuild after Hurricane Harvey.

This funding will provide $20,470,326 to create 86 new homes for Houston renters. Proposals were
scored based on including organizational capacity, cost efficiency, location, community factors, and
how well the development will serve existing City of Houston priorities. Successful developments also
provide services for special needs populations, access to local transit and high-ranked schools, and help
develop priority areas such as the Mayor’s Complete Communities. The list of awarded developments
can be viewed in full below.

The five newly announced projects utilize 4% housing tax credits from the Texas Department of
Housing and Community Affairs (TDHCA) along with other funding sources. These developments will
contain resilient building features and contribute to an equitable recovery process that will provide
affordable, quality homes for up to 40 years. More details on each of these proposals can be viewed in
the table below.

Figure 4: Award summary: Harvey Small Rental Program

    Amounts reflect the original application amount and are subject to revision during HCDD underwriting. Allocations may vary at the time of
    presentation to City Council.

Information about this round of funding rounds of funding can be found at recovery.houstontx.gov

8
Harvey Recovery
                             Situation and Pipeline Report #31
                                                 February 2022

    This report is produced by the Housing and Community Development
     Department and will be updated monthly throughout the life of the
                       Homeowner Assistance Program.

9
You can also read